by Louis Navellier
November 15,2022
There are two meetings going on today – one is short and for the world’s most powerful leaders, while the other runs 12 days and it’s mostly for poor nations to make their needs known to the rich. It’s obvious that these two national groups are meeting a world apart and not talking much to each other! One is the Group of 20 (G20) major economies meeting on the Indonesian island of Bali today and tomorrow (November 15 & 16), and the other is called the Conference of the Parties to the Convention on Biological Diversity (COP27), which focuses on climate change, running November 7-18 in Sharm el-Sheikh, Egypt, where a big theme is how rich countries must pay for the poor countries to reduce their carbon dioxide emissions.
The weather is expected to be in the upper 80s in Bali all week, and sunny and the lower 80s in Egypt.
First, let’s look at the G20, where China’s newly established three-term President Xi Jinping will be the clear leader, since America is still counting its disputed ballots this week and European leaders are in a state of flux amidst an economic recession due to high energy prices and now fast-rising interest rates.
By contrast, prices are falling in China. Last Wednesday, China’s Bureau of Statistics announced that its producer prices declined 1.3% in October, which is indicative of weak domestic demand. Also, China’s exports declined by 0.3% in October, so Chinese exports are becoming less dominant and certainly less reliable. In October, China’s exports declined 9% to Europe and 13% to the U.S. However, a backlog is building, so exports could surge in upcoming months, plus President Xi is expected to wind down Covid Zero lockdown policies, since he also used that strategy as a political weapon to suppress opposition before he was reappointed for an unprecedented third five-year term in his quest to be President for Life.
I should add that Apple has reactivated its plan to build the iPhone 14 in India, not China, through its contract manufacturer Pegatron, due to China’s Covid Zero policy interrupting its iPhone production.
Nvidia just introduced a new graphics processing chip, the A800, that can be exported to China under the new U.S. export restrictions on AI (artificial intelligence) chip sets. The A800 has the same processing power of its flagship A100 chip, but it has narrower interconnect bandwidth to receive data from other chips, which is critical for AI applications. Specifically, while the A100 can send data at 600 gigabytes per second, the A800 can only transmit data at 400 gigabytes per second. I suspect China will try to figure out if it needs more A100 chips to speed up AI applications. In the meantime, Nvidia is the AI winner.
Crude oil prices initially rose early last week in anticipation that China’s demand will pick up as its Covid Zero policies come to an end. Further complicating crude oil prices, the Biden Administration is anticipated to stop draining the Strategic Petroleum Reserve (SPR) later this year, especially in the wake of the mid-term elections and the likely leadership change in Congress. A big surge in crude oil prices to $120 per barrel is expected to occur by February and March when seasonal demand picks up.
In other G20 countries, Germany’s factory orders contracted 4% in October and have fallen 12.8% in the past eight months. Orders from outside the eurozone remain especially weak, so Germany is leading the eurozone into a recession. I should add that Germany’s industrial production has declined 1.2% this year.
Interestingly, Europe likes to say that their natural gas reserves are “full,” but they have limited storage facilities due to their previous pipeline dependence. As a result, there are many LNB tankers in the Baltic Sea waiting to unload more natural gas as soon as a cold front hits and natural gas demand surges. These LNG tankers should help Germany and other countries keep their factories running, but natural gas prices are subsidized by governments, since the price of natural gas is cost-prohibitive in many countries.
Poor Nations Need “Carbon Credits,”
But Their Currencies Are Weak and Their Debts Are Rising
Amidst global energy woes, the COP27 summit is underway in Egypt. Poor nations like Nigeria and Pakistan recently suffered record flooding and are asking for some of the $100 billion per year that rich nations previously pledged to help poor countries reduce their carbon dioxide emissions. However, most poor countries have weak currencies and high debt burdens, so any aid would likely go into debt service.
Furthermore, after Sir Lanka destroyed its economy by trying to comply with ESG and carbon dioxide emissions by switching to organic fertilizer and away from chemical fertilizer that reduced their crop levels, there is tremendous apprehension at COP27 that rich countries no longer have the means to help poor countries. Knowing this, an obscure carbon credit system is being proposed by climate envoy John Kerry to aid the poor countries – a system so complex that it will likely go nowhere after COP27 ends.
I should add that coal demand is rising in poor countries, and since many rich countries in Europe had to revert back to coal due to the chaos associated with breaking away from Russian natural gas, COP27 is anticipated to be a bust, since many rich countries look like hypocrites when it comes to green policies.
Last year, we wrote from on the scene at COP26 in Scotland. The big outcome there, besides the parade of VIP motorcades and hundreds of private jets, was that the world would try to reduce its carbon dioxide emissions by switching to hydrogen, even though most hydrogen is derived from natural gas.
To verify that point, earlier this month, The Wall Street Journal published an article (“Gas Exporter Sempra Infrastructure to Build New U.S. LNG Plant,” November 3, 2022) about how Sempra was studying how to “repurpose” its natural gas pipelines in California due to the state’s ban on natural gas furnaces and water heaters in 2030 (many cities have already implemented the natural gas appliance ban).
WSJ said that Sempra was planning on transporting green hydrogen via its pipelines that currently transport natural gas. However, WSJ said that “Betting on green hydrogen, which is made using renewable energy, isn’t a sure thing. It is expensive to produce, and there isn’t yet a widespread market for it.” Furthermore, WSJ added that “There are also safety risks and engineering hurdles associated with retrofitting pipelines to carry hydrogen and using it to fuel power plants and trucks.”
The bottom line is there is no such thing as a mass market for green hydrogen, so most hydrogen is derived from natural gas. In other words, it is hard to fix stupid policies, and I think the switch to hydrogen fuel cells in commercial trucks and other energy applications is at least premature and for now looks pretty “stupid,” as it will just boost natural gas demand, especially in California.
And finally, let me add that The Wall Street Journal reported last Tuesday that Japan is selling short-term Treasury securities in an effort to prop up the Japanese yen, which has fallen 21% against the U.S. dollar this year alone. Essentially, since Japan is one the biggest buyers of U.S. Treasury securities, persistent selling pressure from Japan in the past five months has helped to invert the Treasury yield curve.
This selling pressure makes the Fed’s selling of $95 billion per month in Treasury securities to reduce its balance sheet much more difficult. As I have said many times, the Fed never fights market rates, so if Treasury yields rise, then the Fed has to raise its key interest rates to get in synch with market rates.
Navellier & Associates owns Nvidia (NVDA), and Apple Computer (APPL in managed accounts. Louie Navellier and his family personally own Nvidia (NVDA), and Apple Computer (APPL) via a Navellier managed account, and Nvidia (NVDA), and Apple Computer (APPL), in a personal account.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Countries Face Winter in Warm Spots – Bali’s G20 and Egypt’s COP27
Income Mail by Bryan Perry
Stocks Impress as Crypto Is Eviscerated
Growth Mail by Gary Alexander
Are You Better Off Than You Were…50 Years Ago?
Global Mail by Ivan Martchev
The Fed Finally Caused the “Complete Inversion”
Sector Spotlight by Jason Bodner
What Last Thursday’s Market Surge Told Us
View Full Archive
Read Past Issues Here

Louis Navellier
CHIEF INVESTMENT OFFICER
Louis Navellier is Founder, Chairman of the Board, Chief Investment Officer and Chief Compliance Officer of Navellier & Associates, Inc., located in Reno, Nevada. With decades of experience translating what had been purely academic techniques into real market applications, he believes that disciplined, quantitative analysis can select stocks that will significantly outperform the overall market. All content in this “A Look Ahead” section of Market Mail represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Important Disclosures:
Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier’s judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not a solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.To the extent permitted by law, neither Navellier & Associates, Inc., nor any of its affiliates, agents, or service providers assumes any liability or responsibility nor owes any duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report. Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.
None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients and the reader should not assume that investments in the securities identified and discussed were or will be profitable.
Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for every investor. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor’s holdings, when redeemed, may be worth less than their original cost.
One cannot invest directly in an index. Index is unmanaged and index performance does not reflect deduction of fees, expenses, or taxes. Presentation of Index data does not reflect a belief by Navellier that any stock index constitutes an investment alternative to any Navellier equity strategy or is necessarily comparable to such strategies. Among the most important differences between the Indices and Navellier strategies are that the Navellier equity strategies may (1) incur material management fees, (2) concentrate its investments in relatively few stocks, industries, or sectors, (3) have significantly greater trading activity and related costs, and (4) be significantly more or less volatile than the Indices.
ETF Risk: We may invest in exchange traded funds (“ETFs”) and some of our investment strategies are generally fully invested in ETFs. Like traditional mutual funds, ETFs charge asset-based fees, but they generally do not charge initial sales charges or redemption fees and investors typically pay only customary brokerage fees to buy and sell ETF shares. The fees and costs charged by ETFs held in client accounts will not be deducted from the compensation the client pays Navellier. ETF prices can fluctuate up or down, and a client account could lose money investing in an ETF if the prices of the securities owned by the ETF go down. ETFs are subject to additional risks:
- ETF shares may trade above or below their net asset value;
- An active trading market for an ETF’s shares may not develop or be maintained;
- The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track;
- The cost of owning shares of the ETF may exceed those a client would incur by directly investing in the underlying securities; and
- Trading of an ETF’s shares may be halted if the listing exchange’s officials deem it appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.
Grader Disclosures: Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The sample portfolio and any accompanying charts are for informational purposes only and are not to be construed as a solicitation to buy or sell any financial instrument and should not be relied upon as the sole factor in an investment making decision. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The performance presented is not based on any actual securities trading, portfolio, or accounts, and the reported performance of the A, B, C, D, and F portfolios (collectively the “model portfolios”) should be considered mere “paper” or pro forma performance results based on Navellier’s research.
Investors evaluating any of Navellier & Associates, Inc.’s, (or its affiliates’) Investment Products must not use any information presented here, including the performance figures of the model portfolios, in their evaluation of any Navellier Investment Products. Navellier Investment Products include the firm’s mutual funds and managed accounts. The model portfolios, charts, and other information presented do not represent actual funded trades and are not actual funded portfolios. There are material differences between Navellier Investment Products’ portfolios and the model portfolios, research, and performance figures presented here. The model portfolios and the research results (1) may contain stocks or ETFs that are illiquid and difficult to trade; (2) may contain stock or ETF holdings materially different from actual funded Navellier Investment Product portfolios; (3) include the reinvestment of all dividends and other earnings, estimated trading costs, commissions, or management fees; and, (4) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. For these and other reasons, the reported performances of model portfolios do not reflect the performance results of Navellier’s actually funded and traded Investment Products. In most cases, Navellier’s Investment Products have materially lower performance results than the performances of the model portfolios presented.
This report contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of The U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions, and projections, are not guarantees of future results or performance, and involve substantial risks and uncertainty as described in Form ADV Part 2A of our filing with the Securities and Exchange Commission (SEC), which is available at www.adviserinfo.sec.gov or by requesting a copy by emailing info@navellier.com. All of our forward-looking statements are as of the date of this report only. We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.
FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.
IMPORTANT NEWSLETTER DISCLOSURE:The hypothetical performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier’s Growth Investor, Louis Navellier’s Breakthrough Stocks, Louis Navellier’s Accelerated Profits, and Louis Navellier’s Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters’ reported hypothetical performances should be considered mere “paper” or proforma hypothetical performance results and are not actual performance of real world trades. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier Investment Products’ portfolios and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters contain hypothetical performance that do not include transaction costs, advisory fees, or other fees a client might incur if actual investments and trades were being made by an investor. As a result, newsletter performance should not be used to evaluate Navellier Investment services which are separate and different from the newsletters. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or hypothetical Newsletter performance claims, (which are calculated solely by Investor Place Media and not Navellier) should be referred to InvestorPlace Media, LLC at (800) 718-8289.
Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.
Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier’s composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report.
FactSet Disclosure: Navellier does not independently calculate the statistical information included in the attached report. The calculation and the information are provided by FactSet, a company not related to Navellier. Although information contained in the report has been obtained from FactSet and is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and it may be incomplete or condensed. The report and the related FactSet sourced information are provided on an “as is” basis. The user assumes the entire risk of any use made of this information. Investors should consider the report as only a single factor in making their investment decision. The report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. FactSet sourced information is the exclusive property of FactSet. Without prior written permission of FactSet, this information may not be reproduced, disseminated or used to create any financial products. All indices are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment and an investment cannot be made in any index. Past performance is no guarantee of future results.